Megaupload founder Kim Dotcom: Kingpin, baller, car racer, “God”

For entertainment studios around the world, Kim Dotcom probably looks a lot like King Henry VIII. To them he is rich, rotund, and chopping their businesses off at the head.

Two of those attributes, at least, are factually true. The third is in legal dispute.

Kim Dotcom, the founder of recently indicted file sharing company Megaupload, was born Kim Schmitz. A German native who legally changed his surname to Dotcom ten years ago, he has a speckled past. This includes accusations of credit card fraud and criminal hacking, as well as a confession of embezzlement. Now Kim lives in a New Zealand mansion allegedly worth $30 million and owns high-end vehicles like a Rolls-Royce, a Maserati, and a Lamborghini.

It’s all legitimately-acquired wealth, according to Megaupload spokesperson Bonnie Lam.

In accordance with German’s “clean-slate” law, Dotcom’s record has been wiped clean of his previous offenses, and he has paid his due after his convictions, Lam said.

“He has matured, learned from his past mistakes and is a successful businessman,” Lam told Cnet. “Kim is one of many shareholders at Mega and not involved in most day-to-day business decisions.”

Megaupload is the company’s flagship site, founded in 2005. It lets people upload, store and transfer files around the globe, a service that can be used for legitimate purposes (transferring a large data file to a business associate, for instance) but which, the FBI alleges, is also used for distributing copyrighted video and audio. The company’s headquarters are said to be in Hong Kong, though its servers exist in other countries as well. The US FBI took action after discovering servers in Virgina holding unlicensed copyrighted material. Indeed, the US calling this a “Mega Conspiracy.”

The indictment served yesterday listed assets owned by Dotcom and his fellow employees, which tallied to around $175,000,000. Expensive vehicles, artwork, electronics, and a laundry list of bank accounts were named.

On Friday, police in New Zealand raided Dotcom’s home and seized many of these assets, including a Rolls Royce, numerous Mercedes-Benz cars, cash and allegedly guns. Dotcom is known for enjoying his fast cars and attending the Gumball 3000, an automobile “rally” that has drawn celebrities such as Snoop Dogg, Johnny Knoxville and others.

Dotcom has been in trouble with the law for money before. In 2001, the Megaupload founder pocketed 1.5 million euros after promising to invest 50 million euros into failing company LetsBuyIt.com. He pulled the fraud off by purchasing 375,000 euros worth of stock in the company, made his investment announcement, and watched the stock price soar. After the stock had climbed a considerable amount, Dotcom cut and ran, having never possessed enough money to make the 50 million euro investment in the first place. In 2003, Dotcom admitted to embezzlement and was flown from Thailand to Germany for the trial.

According to New Zealand-based website 3 News, New Zealand’s government initially denied Dotcom’s application residency when he failed a “good character” test. However, he then donated to the Christchurch Earthquake Fund and invested $10 million in government bonds, and his application was subsequently approved.

Now Dotcom is facing even more financial charges. He and his alleged co-conspirators are accused of paying third parties to upload copyrighted material.

Dotcom remains positive, however. When faced with three of his coworkers before the press in a New Zealand court room, he invited pictures and video. When a lawyer asked the press to stop, Kim Dotcom interjected with, “We have nothing to hide.”